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Technology Stocks : Apple Inc.

AAPL 275.92

-0.2%

Feb 5 3:59 PM EST

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To: Trey McAtee who wrote (4417)	8/22/1997 2:31:00 AM
From: FR1	of 213185

I think the clone fight is a important one. I may have it all wrong, but as I remember it, IBM once had everything all locked up. Then the clones moved in and took charge. Learning from this, Apple was smart enough to put their MAC OS on a chip thereby making it hardware and making legal protection much stronger. The lesson is that if you let the clones start changing your system it is a quick road to a uncontrolled and confused product. A note on rapsody. The reason I came back to investing and taking interest in Apple is the fact that they are moving to a UNIX system. Almost every major OS is UNIX or a UNIX adaptation. This is also Microsoft's weakness. DEC rewrote UNIX (to avoid rights) and called it VMS. Microsoft hired the guy who wrote VMS to rewrite UNIX so it would be backwardly compatible with all the MSDOS junk. This makes a big mess because many fundamental things like the path names (\ vs /) are in conflict. Schools, government and large businesses do not want to move to NT but there is no large stable business that offers UNIX with a great GUI. Moving to NT would make picking up the zillions of man-years of legacy UNIX code difficult at best. Schools that have their students write a UNIX OS from the ground up as practice are not going to do that with NT. I see a great future for Apple. The only way to destroy the future is the way the Lisa and NeXT was destroyed - overpricing. The Lisa cost $10M - nobody's gonna buy it. A NeXT machine cost $12M - nobody's gonna buy it. And guess what? Apple just sent out a great CD demonstrating and offering OPENSTEP. It's a great software product. My friends and I would love to buy it and write code. The cost? $2,700 minimum - nobody's gonna buy it. My question: how many times does a man (Jobs) have to make the same mistake before he learns a lesson? After 3 strikes you are out. The price, Steve, is $300 - $600. Just copy Microsoft. The ground floor is cheap. Anybody can play. The software is somewhat stripped down. You move upstairs and it costs bucks. Look at Win95 vs NT Server costs or Access vs Sequel Server or Visual C++ vs Visual Developer's Kit.

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